Posted by JCB on Feb 13, 2019 in Advice
You should also be asking “Am I paying more or less under the new tax laws?” We are seeing a reduction in IRS refunds this year. We are also seeing a reduction in total income taxes paid. The net result is taxpayers are keeping more of their income throughout the year. When we sit down with our clients and show a two or three year comparison, the savings is more apparent. Here are... read more

Posted by JCB on Jan 31, 2019 in Advice
Taxpayers and tax practitioners received guidance from the IRS on what to expect in the areas of audits, collections, tax return processing, and Tax Court operations now that the government shutdown has concluded. The IRS explained on its website that IRS employees returned to work on Jan. 28 and are going through mail and voicemail messages, but that it will take several days for them to catch... read more

Posted by JCB on Jan 28, 2019 in Advice
IRC section 6654 requires that the lesser of 90% of the tax shown on the return for the tax year, or 100% of the tax shown on the prior year tax return (110% if prior year AGI is above $150,000) must be paid through withholding and/or estimated tax payments throughout the year. A taxpayer is subject to the underpayment of estimated tax penalty for failing to meet these requirements. The penalty... read more

Posted by JCB on Jan 24, 2019 in Advice
During the longest partial government shutdown in U.S. history, many IRS operations are inactive. About 70,000 IRS employees are furloughed (87.5% of its workforce), and most of those who are still on the job are working without pay. Although the IRS has announced that filing season will still open on time, and that tax refunds will be issued during the government shutdown, most other functions... read more

Posted by JCB on Jan 14, 2019 in Advice
IR-2019-01, January 7, 2019 WASHINGTON ― Despite the government shutdown, the Internal Revenue Service today confirmed that it will process tax returns beginning January 28, 2019 and provide refunds to taxpayers as scheduled. “We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown. I appreciate the hard work of the employees and their commitment... read more

Posted by JCB on Jan 7, 2019 in Advice
The IRS is once again warning taxpayers, employers, and tax professionals to be on guard against the latest wave of W-2 scams. This has become one of the more dangerous email scams for tax administration. The emails appear to be from an executive or organization leader to a payroll or human resources employee. It may start with a simple,”Hey, you in today?” By the end of the... read more

Posted by JCB on Jan 7, 2019 in Advice
Each year, a number of provisions in the Internal Revenue Code (IRC) are adjusted for inflation. The IRS recently released the inflation adjusted amounts for 2019. The following chart highlights a number of these adjustments, as they compare to the 2018 and 2017 amounts. See the attached listing of IRA and 401(k) limits, standard deduction amounts and other adjusted amounts. 2019 Inflation... read more

Posted by JCB on Jan 7, 2019 in Advice
The IRS is warning the public of a surge of fraudulent emails impersonating the IRS and using tax transcripts as bait to entice users to open documents containing malware. The scam is especially problematic for businesses whose employees might open the malware because this malware can spread throughout the network and potentially take months to successfully remove. This well-known malware, known... read more

Posted by JCB on Jan 7, 2019 in Advice
The state of CT passed a “new” tax on small business entities (S corps and Partnership returns) starting in 2018. Prior to this tax, the entity would give the owner(s) a K-1 and then the owner(s) would pay the CT income tax when the personal tax return was filed. The new tax mandates the entity to pay the tax on the income. Connecticut will then give that owner credit for the tax... read more

Posted by JCB on Jan 7, 2019 in Advice
The IRS has released the 2019 standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes. The following chart reflects the new 2019 standard mileage rates compared to the 2017 and 2018 tax year standard mileage rates. 2019 2018 2017 Business rate per mile* 58.0¢ 54.5¢ 53.5¢ Medical and... read more